I don't believe it. First of all, how would you explain, "Black and White World" or "Hating Hate" off of Battle Hymns? And why would they allow their stuff to be on an ARA benefit album? Not only that, but considering how intense anti-fascists are, I would highly doubt that they would ever let a band be on their comp if anyone in the band had even the loosest connections to racist groups or individuals.

Plus, try googling "Suicide Machines KKK" and the only applicable thing that comes up is this interview on the sideonedummy website:

Jay: Jesus, what hasn’t happened in the Detroit scene? I’ve been backed in the corner by nazi skinheads that beat us up so bad that they broke my friends arm. People want to understand why I hate those fuckers so much. In the scene I was so out spoken about nazi skinheads and I fought so many of them over the years that I would get hate mail at my house because they knew that my dad was Mexican and my little sisters were half Mexican. There would be all kinds of KKK and Troops of Creator all that kind of crap. I ended up fighting so many of those guys. Dealin’ with that crap, it was ridiculous.